3.2 key terms

  • Created by: lara__001
  • Created on: 28-12-18 15:30
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  • 3.2 Managers, Leadership & Decision-making
    • Leadership style - the way that the functions of leadership are carried out and the way that a leader behaves
      • Authoritarian - where a leader dictates policies and procedures, controls all situations without meaningful participation by the subordinates.
      • Paternalistic - their organisational power is used to control and protect subordinate staff that are expected to be obedient.
      • Democratic - involves a team guided by a leader where all individuals are involved in the decision-making process. The group's leader has the authority to make the final decision.
      • Laissez-faire  - leader has no input in decision-making. Staff are free to do whatever they want.
    • Opportunity cost - the cost of missing out on the next best alternative. The benefits that could've been gained by taking a different decision.
    • Approaches to decision-making
      • Hunch - based on intuition: gut feeling & experience
      • Scientific - based on data and analysis
    • Trait theory - the belief that leaders and managers hold certain traits that distinguish them from other people.
    • Behavioural theory - suggests that there is an appropriate style of management or leadership determined by the context, situation and nature of the task.
    • The Blake and Mouton Grid - a grid that identifies a number pf approaches to leadership based on the extent to which a manager is focused on their concern for production and their concern for people
    • The Tannenbaum-Schmidt Continuum - shows where a manager's approach lies on a continuum, ranging from the manager imposing strict authority at one extreme, through to employees having full freedom to act as they choose at the other extreme
    • Decision tree - a model that represents the likely outcomes for a business of a number of courses of action showing the financial consequences of each
    • Stakeholder - groups or individuals who have an interest in a business

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